Ping An 2318

[winston]

not vested

Does FY23 mark a ‘kitchen sink’?

FY23 weakness across multiple segments may lead some investors to see it as ‘kitchen-sinking’ in our view, with FY24F thus easier to record yoy growth.

Actuarial assumptions changes saw their FY23 risk discount rate (RDR) cut 1.5%-pts to 9.5%, and the investment return assumption cut 50bp to 4.5%.

As the RDR is analogous to a cost of equity, we think the large cut in RDR may continue reducing investors’ faith in the credibility of embedded value.

Reiterate Add rating, with a lower TP of HK$55 due to lower FY24-25F EPS.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 3F22C507B3

[winston]

not vested

At the break of dawn

FY23 results a mixed bag, with robust VNB growth of +36% y-o-y in line and net profit decline of 23% missing expectations

Net profit decline driven by net losses from asset management and earnings decline in P&C and technology segments

Expect positive VNB growth in life business and group’s net profit to bottom out from FY23’s low in FY24F

Lower net profit forecasts by 22%/24% based on weaker investment performance across core
segments; slightly revise up VNB growth by 1%/2% in FY24F/25F. Maintain BUY, cut TP to HK$58

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18819

[winston]

not vested

<Research Report>CMBI Slashes PING AN (02318.HK) TP to $52; Solid Div. Despite Decline in OPAT

PING AN (02318.HK) prudently lowered its long-term investment return assumption for L&H EV to 4.5%, and Risk Discount Rate (RDR) to 9.5% for 2023, based on macro-environment and long term interest rate trends, CMBI released a research report saying.

The adjustments were expected, however, the magnitude of the impact on the value of new business (VONB) and L&H EV exceeded the market's expectation.

The Group's operating profit after tax (OPAT) declined by 19.7% YoY, dragged down by net asset management losses.

However, the dividend remained solid, with the dividend increasing to RMB2.43 per share during the period.

Taking into account the investment volatility and the high base since 2Q23, CMBI lowered its FY2024 to FY2026 EPS forecasts to RMB6.94/ RMB7.87/ RMB8.62, with rating kept at Buy, and slashed its target price to $52 from $80.3.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

<Research Report>Citi Cuts TP of PING AN (02318.HK) to $52.6, Results Miss

2024/03/22

Citi Research lowered its target price on PING AN (02318.HK) from $54.5 to $52.6 and maintained its Buy rating.

The broker also lowered its earnings per share forecasts for this year and next year by 3.1% and 2.8%, respectively, to reflect last year's weaker-than-expected results.

The broker said PING AN's earnings, operating profit after tax (OPAT) and embedded value (EV) were all weaker than expected last year, even though the value of new business (VONB) was solid and the dividend per share (DPS) was maintained.

The group's OPAT contracted by 20% YoY to RMB118 billion last year, while net asset management loss widened from RMB5.8 billion in 3Q23 to RMB16.4 billion in 4Q23.

2023 full-year and 2H23 net profit crumpled 23% and 61% YoY respectively.

Total DPS for the year was maintained at RMB2.43, in line with expectations.

PING AN's EV declined significantly by 7% HoH to RMB139 billion in 2H23, mainly due to investment variations and assumption changes.

For the full year, VONB increased by 8% YoY on an actual basis, based on a 0.5-ppt reduction in the long-term investment return assumption to 4.5% and a reduction in the risk discount rate from 11% to 9.5%.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

China Property Market Woes Strike Ping An

By Indrajit Basu

Delay the repayment of a trust product, mainly because of the downturn in the Chinese real estate market.

The size of Funing 615 amounts to approximately 770 million yuan ($100 million).

The shadow banking sector, with an exposure of approximately $3 trillion, is particularly susceptible due to its substantial investments in real estate developers.

Non-performing loans at China’s big four banks, Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Agricultural Bank of China, that jumped 10.4 percent in 2023, from 1.117 trillion Chinese yuan, about $150 billion, in 2022 to 1.23 trillion yuan, about $170 billion.

The asset management division of Ping An reported a loss of 20.7 billion yuan ($2.86 billion), a significant swing from the previous year’s profit, amid broader difficulties in the real estate sector due to volatility in the Hong Kong and Chinese stock markets.

Source: Reuters

https://www.theepochtimes.com/china/chi ... bg15cMs%3D

[winston]

vested

PING AN 1Q Gross Premium Incomes Hike 1.6% to RMB264.422B

PING AN (02318.HK) announced that the accumulated gross premium incomes of the four subsidiaries of the Company for the period from January 1, 2024 to March 31, 2024 grew 1.6% yearly to RMB264.422 billion in aggregate.

During the period, the accumulated gross premium incomes of Ping An Property & Casualty, Ping An Life, Ping An Annuity and Ping An Health amounted to RMB79.076 billion, RMB173.302 billion, RMB6.771 billion and RMB5.273 billion respectively, representing year-on-year increases of 2.8%, 0.9%, 1.5% and 10.7% respectively.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>Nomura Trims PING AN (02318.HK) TP to $54.12, Estimates 1Q NBV Growth Strong but OPAT Weak

Nomura released a research report, viewing that PING AN (02318.HK)'s NBV growth outlook is positive, with 1Q24 NBV likely to remain strong.

Yet, the OPAT may deteriorate under the impact of a high base, which was expected to fall 8% YoY to RMB36.8 billion.

The net profit was forecast to drop 17% to RMB32 billion.

Nomura projected PING AN's OPAT and profit to drop in 1Q24, mainly due to a relative high base in equity investment returns and weakened bank earnings.

Nomura forecast a 15% YoY growth in NBV for PING AN's life in Q1, with life OPAT estimated to fall 1% YoY.

The broker trimmed its TP to $54.12 from $59.64, and rated the company Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Research>UBS Trims PING AN (02318.HK) TP to $56, Expects 1Q24 OPAT Still under Pressure

2024/04/16

UBS issued a research report expecting that PING AN (02318.HK) will record a 15% YoY growth in value of new business (VNB) in 1Q24 on a comparable basis, mainly due to improved margins.

Meanwhile, the Company's first-year premium is expected to fall 3.8% YoY, mainly due to lower bancassurance commissions and a relatively high comparable base.

Related News: Nomura Trims PING AN (02318.HK) TP to $54.12, Estimates 1Q NBV Growth Strong but OPAT Weak

UBS estimated that PING AN's 1Q24 operating profit after tax (OPAT) will still subtract after falling 3% YoY, and that the Company's asset management business will swing loss into profit QoQ in 1Q24, mainly due to the Company's healthier balance sheet after aggressive provisioning in 2H23.

Overall, UBS forecasted PING AN's FY2024 overall OPAT to grow 10%, and the Company to declare a full-year DPS of RMB2.44, implying a dividend yield of 8.7%.

UBS trimmed its target price on PING AN's H-shares from $60 to $56, with rating at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Ping An net pays for stocks slump

Profit at Ping An Insurance (2318) dropped 4.3 percent in the first quarter as stock-market declines and falling bond yields eroded investment returns.

Net income fell to 36.7 billion yuan (HK$39.7 billion) from 38.4 billion yuan a year ago, the Shenzhen-based insurer said in a filing with the Hong Kong stock exchange yesterday.

Operating profit, which strips out one-time items and short-term investment volatility, fell 3 percent.

Net investment yield of insurance funds dropped to 3 percent, down from 3.1 percent a year earlier.

Real estate investments fell to 4.2 percent of the 4.9 trillion yuan portfolio, from 4.6 percent a year earlier.

Source: The Standard

https://www.thestandard.com.hk/section- ... ocks-slump

[winston]

not vested

<Results>PING AN (02318.HK) 1Q Net Profit RMB36.7B, Down 4.3% YoY

PING AN (02318.HK) announced the first quarter results ended March 2024.

The turnover declined 2% year on year to RMB275.893 billion under the IFRS 17 - Insurance Contracts.

The net profit amounted to RMB36.709 billion, down 4.3%. EPS was RMB2.07.

Life & Health achieved new business value (NBV) of RMB 12.89 billion in the first three months of 2024, up 20.7% year on year.

NBV per agent increased 56.4% year on year.

Ping An Property and Casualty (Ping An P&C) posted insurance revenue rise of 5.7% year on year to RMB 80.627 billion in the first three months of 2024.

Related News: Nomura Trims PING AN (02318.HK) TP to $54.12, Estimates 1Q NBV Growth Strong but OPAT Weak

For banking business, Ping An Bank (000001.SZ) tracked net profit growth of 2.3% year on year to RMB 14.932 billion in the first three months of 2024.

Core tier 1 capital adequacy ratio rose to 9.59% and provision coverage ratio was 261.66% as of March 31, 2024.

Retail customers increased 1% year to date to nearly 234 million and contracts per customer reached 2.94 as of March 31, 2024.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN